In Davenport, Iowa, the diocese has finally emerged from bankruptcy after paying $37 million divided among dozens of people who say that they were sexually abused by priests in the area. The entire fiasco involved the diocese’s choice to move priests to unsuspecting parishes after they were accused of sexual assault in their former churches. While the bishopric is supposed to act as an accountability system for priests, this particular group was hiding the religious authorities’ illegal acts and trying to keep the offenses under the radar. In the end, victims of sexual abuse stood up and presented the case to court. The entire situation ended up in a grave personal injury lawsuit which required the diocese to pay out millions of dollars in damages.

The U.S. Bankruptcy judge on the case closed it last week saying that the diocese has finally completed the terms for financial reorganization. In their plan, the bishopric must pay $17.5 million to the 162 victims of abuse and then pay an additional $19.5 million through insurance. As well, the diocese must take significant steps to prevent sexual abuse and the chance that a catastrophe like this could ever occur in Iowa again. The organization will need to investigate all claims and genuinely apologize to victims. The abuse claims stretch all the way back to the 1940’s. Many are posted on a website where victims can declare that they were abused by a priest.

According to CBS News, the diocese filed for bankruptcy protection in 2006 when they didn’t have enough money to compensate the victims. This particular diocese was only one of many who had to make this motion in order to accomplish their goals of compensation. A bishop in the diocese says that the bankruptcy process has allowed the Catholic Church to compensate the victims in a just and fair way. However, he apologizes for their suffering and says that he doesn’t expect the finances to cover the sorrow that these men, women, and children underwent.

The diocese says that it will continue to mandate training for employees so that they can prevent more cases like this. They also will take steps to complete background checks on employees before hiring them and making sure that all employees and volunteers who work with children are free from having any sex crimes on their record. They also hope to employ a victim assistance coordinator who can counsel and aid any victims of the abuse. One prosecuting attorney in the case says that he does not believe that all the victims have been represented yet. He believes that some people are embarrassed or ashamed to accuse authorities in their religion of such a heinous crime, or reveal the situation to friends and family.

This attorney also claims that the bankruptcy was not a fair way to come up with the money for reimbursements. He told CBS that the bankruptcy was a legal maneuver to end financial responsibility for past abuse, and constitutes an unfinished chapter. Two more accusations of sexual abuse are currently underway in court. In many cases, a bankruptcy will not cover any restitutions or criminal fines that are attached to a court case. However, the diocese was able to use their restructuring to pay off these costs. This is considered a Chapter 11 bankruptcy, and while the costs are not dischargeable through this means, it is often easier to pay through the restructuring of finances. In monthly installments, the diocese was able to reimburse victims and get on with their religious duties. If you are involved in a personal injury case and won’t be able to obtain the money, then talk to a bankruptcy attorney about filing a Chapter 11 and making a payment plan.